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Redundancy - Be Prepared:Make a Plan

Is your business considering redundancy?

Redundancy is generally where an employer needs to reduce their workforce - for example, if the business is closing or certain work is no longer required.

This short article is aimed at firms proposing to make fewer than 20 employees redundant.

As the owner of a business, your thoughts may turn to making redundancies to reduce the number of staff you employ in order to cut costs.

If you have to make redundancies they should normally be for the following reasons:

  • You have ceased (or intend to cease) carrying on the business for the purposes of which you employ someone.
  • You have ceased (or intend to cease) to carry on the business in the location you employ someone.
  • You don't require your employees to carry out work of a particular kind any more.
  • You don't require your employees to carry out work of a particular kind in a specific location any more.

Redundancy can occur either where the amount of work disappears completely, or where the amount of work reduces. Redundancy can be voluntary or compulsory.

Ensuring you meet legal requirements is essential if your business is changing or closing. Drawing up a plan will help. This should include.

  • Briefing your managers
  • Talking to your staff
  • Choosing which staff to make redundant
  • Giving redundancy notice and pay
  • Providing notice period rights
  • Allowing staff to appeal
  • Planning for stability after redundancy

Any uncertainty over potential job losses can be very distressing for workers and employers. An ongoing dialogue between the two parties on the state of the business and future prospects can be useful in preparing people for the possibility of bad news. It may even provide the chance of agreeing steps to avoid a potential compulsory redundancy.

It can also help if everyone is clear about the rights and issues surrounding different scenarios when redundancy is on the horizon. If your business is considering redundancy and you need help with the process, Slade Legal has an expert team of Employment Lawyers and Consultants that can advise, assist or even handle the process for you.

Contact Tracey Waite today on 01235 521920 or email